According to CoinDesk: Tether, the issuer of the stablecoin, has frozen $225 million of its own stablecoin in response to a US Department of Justice (DOJ) investigation. The DOJ has centered its efforts on an international human trafficking ring rooted in Southeast Asia, which is linked to the notorious "pig butchering" scam. The scam reportedly cost US citizens $3.3 billion last year, according to the Federal Bureau of Investigation (FBI).
The pursuit of this illicit operation, which has spanned several months, has leveraged blockchain analysis tools provided by Chainalysis. The event signifies the largest-ever freezing of a stablecoin to date, setting a new precedent on the cryptocurrency scene, according to a recent press release. The announcement also clarified that the immobilized tokens resided in self-custodied wallets and were not associated with Tether customers.
Paolo Ardoino, CEO of Tether, spoke on the company's decisive action, emphasizing the importance of their proactive engagement with global law enforcement. He expressed Tether's aim to establish a robust safety precedent within the crypto space through this engagement and a commitment to transparency.